The Bermuda Monetary Authority (BMA) will press ahead this year with plans to streamline the reporting process for the domicile’s captive insurers.
Its recently released business plan for 2015 outlined the proposal, which was put on hold at the end of last year so it could make revisions to its electronic filing platform and models.
The BMA will introduce the necessary legislative amendments that will implement enhanced financial returns for general business Class 1, 2 and 3 captives, as well as Class A and B captive life insurers.
“Enhanced returns will furnish the authority with a more robust statistical dataset about this important segment of Bermuda’s insurance market,” according to the BMA’s business plan.
The work is being carried out as part of wider reforms to make Bermuda equivalent with Solvency II.
In 2015, the BMA will work with industry to refine the risk sensitivity of the Bermuda Solvency Capital Requirement (BSCR). Specific changes will include currency risk, concentration risk, the risk charge on cash and cash equivalents, and adjustments for geographical diversification.
A trial run on the proposed BSCR changes will take place in Q2 2015, with final effect to take place at the end of 2016.
The BMA also plans to consult with industry about holding companies that own or control insurance licence holders, and proposals for enhanced reporting around insurers’ use of segregated account companies.
The authority will also review its supervisory tools and mechanisms to ensure it continues to provide appropriate regulation of Bermuda’s special purpose insurers.
Speaking recently at an executive briefing in Hamilton, BMA CEO Jeremy Cox commented: “In 2015, the authority will remain committed to the wider jurisdictional effort to increase understanding about Bermuda’s vital role in the global financial services industry. Believe me, in the current global environment, this has never been a more important exercise.”
“A quality supervisory environment lies at the heart of Bermuda’s unique value proposition. In 2015, the authority will continue to foster stability and predictability within Bermuda’s vital financial services sector, while keeping supervisory costs at a reasonable level.”
Sixteen new captives and 28 special purpose insurers were registered in Bermuda during 2014, while 22 captive and commercial insurers are awaiting formal sign off in Q1 2015, according to statistics issued in February.
